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“Suspicious” Short Sale Activity May Cost Lenders $375 Million
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You're Now Reading:
“Suspicious” Short Sale Activity May Cost Lenders $375 Million
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
The Easy Way to Shop For a Mortgage Loan
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Receive Multiple Offers. Save Money.
You're Now Reading:
“Suspicious” Short Sale Activity May Cost Lenders $375 Million
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May 26, 2011 (Chris Moore)

CoreLogic has released its 2011 Short Sale Research Study, “CoreLogic Analysis on Short Sale Trends, Risks, and Opportunites” and has found that “suspicious” short sale activity may cost the lending industry $375 million in 2011 with higher losses expected in the future as the pool of distressed properties increases.

For the study, CoreLogic defines “suspicious” short sale transactions as those where a lender may have incurred unnecessary losses due to the short sale transaction quickly followed by a resale transaction for a substantially higher price where that higher price is not supported by an underlying increase in property value.

The study revealed that short sales that show another sale transaction closing on the same day on the same property account for 16 percent of all suspicious short sales in the industry and that on average the resale price was $50,000 greater than what the lender agreed upon for the original short sale price.

The study also found that although Limited Liability Company buyers comprise only two percent of all short sale buyers, they comprise more than 25 percent of buyers in suspicious short sale transactions.

CoreLogic reports that losses in 2011 for lenders, servicers and investors are estimated to be in excess of $375 million in 2011 which is more than 20 percent above the estimated losses of $310 million in 2010 and that they expect “suspicious” short sale transactions to increase in the future.

States with the largest short sale volume (California, Arizona, Colorado and Florida) incur the highest rates of suspicious short sale transactions.

“Short sale volume has tripled in the past two years, and with approximately 1.7 million seriously delinquent loans, I expect volume to grow again in 2011,” said Craig Focardi, senior research director, consumer lending at The TowerGroup. “Identifying risk and monitoring distressed asset sale trends is absolutely essential for lenders to preempt potential losses.”

The study was designed to take a rigorously scientific, data-driven look at current trends in short sales and to identify inherent risks and opportunities associated with these transactions.

More information about “suspicious” short sale transactions is available on CoreLogic’s Website.

Tags: CoreLogic, suspicious short sales, lender losses, resale transactions, investors, lenders, servicers, short sale volume

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May 26, 2011 (Chris Moore)

CoreLogic has released its 2011 Short Sale Research Study, “CoreLogic Analysis on Short Sale Trends, Risks, and Opportunites” and has found that “suspicious” short sale activity may cost the lending industry $375 million in 2011 with higher losses expected in the future as the pool of distressed properties increases.

For the study, CoreLogic defines “suspicious” short sale transactions as those where a lender may have incurred unnecessary losses due to the short sale transaction quickly followed by a resale transaction for a substantially higher price where that higher price is not supported by an underlying increase in property value.

The study revealed that short sales that show another sale transaction closing on the same day on the same property account for 16 percent of all suspicious short sales in the industry and that on average the resale price was $50,000 greater than what the lender agreed upon for the original short sale price.

The study also found that although Limited Liability Company buyers comprise only two percent of all short sale buyers, they comprise more than 25 percent of buyers in suspicious short sale transactions.

CoreLogic reports that losses in 2011 for lenders, servicers and investors are estimated to be in excess of $375 million in 2011 which is more than 20 percent above the estimated losses of $310 million in 2010 and that they expect “suspicious” short sale transactions to increase in the future.

States with the largest short sale volume (California, Arizona, Colorado and Florida) incur the highest rates of suspicious short sale transactions.

“Short sale volume has tripled in the past two years, and with approximately 1.7 million seriously delinquent loans, I expect volume to grow again in 2011,” said Craig Focardi, senior research director, consumer lending at The TowerGroup. “Identifying risk and monitoring distressed asset sale trends is absolutely essential for lenders to preempt potential losses.”

The study was designed to take a rigorously scientific, data-driven look at current trends in short sales and to identify inherent risks and opportunities associated with these transactions.

More information about “suspicious” short sale transactions is available on CoreLogic’s Website.

Tags: CoreLogic, suspicious short sales, lender losses, resale transactions, investors, lenders, servicers, short sale volume

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
HOW
MORTGAGELOANRATEUPDATE
WORKS
Whether you're looking to refinance your current loan, purchasing a new home or looking for a home equity loan, we make it easy at MortgageLoanRateUpdate. Our questionnaire is simple and quick to use and your information is safely transmitted to us with SSL encryption. With just two minutes of your time, you could have multiple lenders competing for your business which could save you thousands.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.

May 26, 2011 (Chris Moore)

CoreLogic has released its 2011 Short Sale Research Study, “CoreLogic Analysis on Short Sale Trends, Risks, and Opportunites” and has found that “suspicious” short sale activity may cost the lending industry $375 million in 2011 with higher losses expected in the future as the pool of distressed properties increases.

For the study, CoreLogic defines “suspicious” short sale transactions as those where a lender may have incurred unnecessary losses due to the short sale transaction quickly followed by a resale transaction for a substantially higher price where that higher price is not supported by an underlying increase in property value.

The study revealed that short sales that show another sale transaction closing on the same day on the same property account for 16 percent of all suspicious short sales in the industry and that on average the resale price was $50,000 greater than what the lender agreed upon for the original short sale price.

The study also found that although Limited Liability Company buyers comprise only two percent of all short sale buyers, they comprise more than 25 percent of buyers in suspicious short sale transactions.

CoreLogic reports that losses in 2011 for lenders, servicers and investors are estimated to be in excess of $375 million in 2011 which is more than 20 percent above the estimated losses of $310 million in 2010 and that they expect “suspicious” short sale transactions to increase in the future.

States with the largest short sale volume (California, Arizona, Colorado and Florida) incur the highest rates of suspicious short sale transactions.

“Short sale volume has tripled in the past two years, and with approximately 1.7 million seriously delinquent loans, I expect volume to grow again in 2011,” said Craig Focardi, senior research director, consumer lending at The TowerGroup. “Identifying risk and monitoring distressed asset sale trends is absolutely essential for lenders to preempt potential losses.”

The study was designed to take a rigorously scientific, data-driven look at current trends in short sales and to identify inherent risks and opportunities associated with these transactions.

More information about “suspicious” short sale transactions is available on CoreLogic’s Website.

Tags: CoreLogic, suspicious short sales, lender losses, resale transactions, investors, lenders, servicers, short sale volume

Home Buying Tips
Home Selling Tips
About
Mortgages
HOW
MORTGAGELOANRATEUPDATE
WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at MortgageLoanRateUpdate and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.